Calculate the cost budget for the project below with a contingency reserve of 20% is applied to the cost estimate and 4% management reserve is applied to the cost baseline. Control Account Cost /$ Project Management 1,000,000 Design 4,000,000 Execution 10,200,000 Certification 600,000 Marketing 4,500,000 Launch 320,000 You have a budget at completion of $2500. You had planned to have $2200 worth of work accomplished by now. However, you have just found out that you are only 60% complete with the task. What is your SV? A project was budgeted at $1,000,000. Meanwhile, the project is executed, and the following current figures have been assessed: PV: $500,000 EV: $450, 000 AC: $550, 000 Assuming that the cost variance was caused by one-time cost drivers, which are no more effective, what estimate at completion (EAC) can you derive from these figures?
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
Calculate the cost budget for the project below with a contingency reserve of 20% is applied to the cost estimate and 4% management reserve is applied to the cost baseline.
|
Control Account |
Cost /$ |
|
Project Management |
1,000,000 |
|
Design |
4,000,000 |
|
Execution |
10,200,000 |
|
Certification |
600,000 |
|
Marketing |
4,500,000 |
|
Launch |
320,000 |
- You have a budget at completion of $2500. You had planned to have $2200 worth of work accomplished by now. However, you have just found out that you are only 60% complete with the task. What is your SV?
- A project was budgeted at $1,000,000. Meanwhile, the project is executed, and the following current figures have been assessed:
PV: $500,000
EV: $450, 000
AC: $550, 000
Assuming that the cost variance was caused by one-time cost drivers, which are no more effective, what estimate at completion (EAC) can you derive from these figures? ]
- Based on the values from part C of this question you are required to estimate the cost and projected time of completing this project. Find the CPI and SPI
QUESTION 2.
Milton Construction Ltd has been awarded a lucrative contract of some $J10B by the National Works Agency (NWA) to rehabilitate a section of the railway connecting Kingston to Montego Bay. Some locations of the project area have been prone to violence and extortion activities in the past; however, the Jamaica Defence Force (JDF) has been assigned to secure the work area for the entirety of the project.
- Using only the only the information given in the case identify two (2) threats and one (1) opportunity for the project.
b.) Alvin Harris, a project manager of the NWA has been advised by the project
consultant to change a particular route of the railway in order to ensure a faster and
more reliable operation. He instructs Carla Porter, Project Risk Manager of Milton
Construction Ltd to change the route. Carla has to now decide how to execute this
instruction whether using her existing project staff, subcontracting the work or hiring
additional staff. Using EMV calculations, what option should she choose based on the
information shown below?
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